401K,what are good investments toward that?

Im a young person and i have a 401k plan and was wondering how should i set my 401k in order to get a higher interest per year.My interest is slowly crawling upward,but im scared if i set it on high i will lose out on what i have gained,what is the best way to go on this?

certainly there is a possibility that you could lose money in the short term. But overall the market performs at a rate of 11-12% a year. Some years are negative and other years are at 20%. So by staying out of the market in a money market or something like that you are preventing yourself from sharing in about 6% of that return.

You're young...put your money in a good 80/20 portfolio (aggressive) or in the S&P 500. Then read up on this as much as you can. You don't have to fully understand it now but over time you will and thats when you'll want to be a little better versed in diversification.

You may lose money...you're just going to have to reconcile yourself to that fact. There will be times when your account will go backwards...but it will recover! And, as long as you are continually putting money in you're actually buying at a lower price and thus able to increase your long term gain.

I was exactly the same way. I put all of my 401k into the safest of investments. Over a very long period of time, it does add up however. If you wish to take a little more risk in the hope of accumulating a little more reward, consider investing portions of your 401k into different asset classes.

Example:

40% very safe investments such as fund investing in t-bills.
30% large cap stock fund.
15% small cap stock fund
15% foreign developed market stock fund.

With this breakdown, 40% of your assets are very safe and will return about 5% annually. The other 60% is suseptable to market fluctionations but over a long period of time should return about 10% annually. There will be periods when that portion will not do well and could loose value perhaps significant value, but if you hang on and do not press the panic button it should recover.